Full Breakdown & Analysis of Top 10 Nigerian States with the Lowest Federal Allocation in 2025

Top 10 States with the Lowest FAAC Allocation in 2025

States with the lowest Federation Account Allocation Committee (FAAC) receipts in 2025 were largely those with smaller economic bases, limited industrial activity, and little or no exposure to oil-derived revenue.

Unlike oil-producing or heavily commercialised states, these states depend more heavily on federally shared inflows to finance recurrent expenditure and capital projects.

The figures are based on FAAC data reviewed by Nairametrics Research across all 36 states, covering:

Net Statutory Allocation

13% Derivation Revenue (oil-linked)

Net VAT Allocation

Electronic Money Transfer Levy (EMTL)

Overall, the pattern reinforces how population size, consumption intensity, and access to oil revenue continue to shape the lower end of Nigeria’s fiscal distribution table.

What the Data Shows

FAAC allocations are determined by a blend of four major revenue components:

Net Statutory Allocation

13% Derivation Revenue (Oil-linked)

Net VAT Allocation

Electronic Money Transfer Levy (EMTL)

States at the bottom of the ranking are typically non-oil producing and operate modest internally generated consumption bases. As a result, VAT and statutory inflows account for the bulk of their FAAC receipts, while EMTL contributes a smaller but steadily growing share.

Top 10 States with the Least FAAC Net Allocation in 2025

10. Yobe State — N155.20bn

Yobe received N155.20 billion in 2025, up from N96.53 billion in 2024 — a 60.78% increase (N58.67 billion).

Net Statutory Allocation: N63.61bn

Net VAT Allocation: N77.56bn

EMTL: N4.07bn

The growth was largely driven by improved VAT and statutory inflows, though the state remains among the least fiscally endowed nationwide.

9. Taraba State — N153.33bn

Taraba recorded N153.33 billion in 2025, up from N99.29 billion in 2024 — a 54.42% increase (N54.04 billion).

Net Statutory Allocation: N64.66bn

Net VAT Allocation: N76.06bn

EMTL: N4.07bn

The state remains heavily dependent on federal transfers due to the absence of oil derivation revenue.

8. Nasarawa State — N149.67bn

Nasarawa’s allocation rose to N149.67 billion in 2025 from N94.43 billion in 2024 — a 58.49% increase (N55.24 billion).

Net Statutary Allocation: N63.94bn

Net VAT Allocation: N73.27bn

EMTL: N3.97bn

Growth was primarily consumption-driven, with VAT playing a central role.

7. Kwara State — N145.93bn

Kwara received N145.93 billion, up 62.21% from N89.96 billion in 2024 — one of the sharpest increases within the bottom group.

Net Statutory Allocation: N53.18bn

Net VAT Allocation: N80.40bn

EMTL: N4.25bn

The improvement was strongly tied to VAT performance and expanding consumer activity.

6. Osun State — N144.94bn

Osun’s receipts climbed 62.51% year-on-year from N89.19 billion to N144.94 billion.

Net Statutory Allocation: N44.99bn

Net VAT Allocation: N85.59bn

EMTL: N4.80bn

VAT formed the largest share of its total allocation.

5. Ebonyi State — N139.10bn

Ebonyi received N139.10 billion, up 55.07% from N89.69 billion in 2024.

Net Statutory Allocation: N49.69bn

Net VAT Allocation: N76.21bn

EMTL: N4.03bn

The increase was evenly supported by VAT and statutory allocations.

4. Gombe State — N136.44bn

Gombe recorded N136.44 billion in 2025, a 58.01% increase from N86.35 billion in 2024.

Net Statutory Allocation: N46.67bn

Net VAT Allocation: N77.24bn

EMTL: N4.08bn

VAT remained the dominant contributor.

3. Cross River State — N130.84bn

Cross River received N130.84 billion, up 59.45% from N82.06 billion in 2024.

Net Statutory Allocation: N37.75bn

Net VAT Allocation: N79.65bn

EMTL: N4.47bn

In the absence of significant oil derivation revenue, VAT and statutory transfers remain critical.

2. Ekiti State — N130.30bn

Ekiti’s allocation stood at N130.30 billion in 2025, up 52.88% from N85.23 billion.

Net Statutary Allocation: N38.82bn

Net VAT Allocation: N78.35bn

EMTL: N4.17bn

VAT accounted for the largest share of receipts.

1. Ogun State — N124.19bn

Ogun recorded the lowest net FAAC allocation in 2025 at N124.19 billion, up 49.06% from N83.32 billion in 2024.

Net Statutary Allocation: N18.99bn

Net VAT Allocation: N90.01bn

EMTL: N5.40bn

Ogun’s allocation structure was heavily skewed toward VAT, which accounted for the overwhelming share of its receipts.

Deeper Insight

The Total Gross Amount reveals more nuanced fiscal patterns, particularly for Ogun, Ekiti, Cross River, and Gombe.

Ogun: Gross — N175.30bn | Net — N124.19bn | VAT-driven (N90.01bn)

Ekiti: Gross — N158.96bn | Net — N130.30bn | VAT-led structure

Cross River: Gross — N170.18bn | Net — N130.84bn | VAT + statutory heavy

Gombe: Gross — N161.91bn | Net — N136.44bn | Consumption-driven growth

While year-on-year growth is notable across the board, it remains largely driven by VAT and statutory improvements rather than structural economic expansion.

Even the least-funded states can experience strong nominal growth if VAT performance improves. However, reliance on federally shared revenues exposes these states to systemic risks:

A slowdown in consumption affects VAT receipts.

Federal revenue volatility impacts statutory allocations.

Non-oil states lack derivation buffers.

States like Ogun and Ekiti are less vulnerable to oil price swings but remain exposed to national consumption trends. Meanwhile, states like Cross River and Gombe face structural vulnerabilities due to limited diversification.

What You Should Know

FAAC allocation trends reflect deeper economic positioning:

Oil-rich states such as Delta and Rivers continue to dominate allocations.

Commercial hubs like Lagos and Kano increasingly benefit from VAT expansion.

Oil-dependent states face volatility risks tied to global crude prices.

Digital transactions, urbanisation, and commercial expansion in states like Oyo and Anambra show how VAT-led growth can reshape fiscal strength.

The broader takeaway: diversification into taxable commercial activity remains the most sustainable pathway for long-term fiscal resilience.